Yet another scandal brews as a tender for 10 locomotives for Sri Lanka's railway rides troubled waters. The Transport Ministry this year called for tenders for 10 new locomotives. Out of 10 offers received only three tenders conformed to the tender conditions and technical specifications. As such a financial evaluation was done on the three responsive offers which were from General Motors of Canada Ltd., Samsung Corporation, Korea, and GEC Alsthom Transport, France.
Following conflicts regarding the tender procedure a Cabinet sub committee has been appointed to make a decisive recommendation on the above three bidders. Four Government Ministers, Lakshman Kadirgamar, Ratnasiri Wickramanayake, Kingsley Wickremaratne and Lakshman Jayakody have been appointed to study the three offers made and award the tender to the most suitable party. All documents pertaining to the said tender are now before this Committee.
Speculation and discontent have arisen regarding this tender as the two most suitable bids according to a Technical Evaluation Committee report seem to be on the point of losing the award. Allegations are being made of political interference and an abuse of power disregarding a government promise to maintain a clearly defined policy on transparency. When The Sunday Times contacted A.H.M. Fowzie, Minister for Transport, he refused to discuss the issue saying, "the matter has yet to be decided."
The government last week issued a communique reiterating that it had adopted a very clearly defined policy regarding the honesty and transparency of transactions in all government affairs. The communique said the Cabinet of Ministers had taken a serious view of the fact that Ministers, Members of Parliament and senior government officials are constantly harassed by various types of bidders, contractors and their commission agents in the process of canvassing for government contracts and business.
The following facts state the three offers made with regard to the locomotive tender detailing each company's compatibility and non compatibility.
General Motors Canada's experience with Sri Lanka spans a period of 45 years. A report by the Technical Evaluation Committee which studied the various bids offered for the ten locomotives without the cost of spare parts states the General Motors offer being Rs. 1.09 billion, Samsung Korea Rs. 1.43 billion and GEC/Alsthon Rs. 1.45 billion.
The Technical Evaluation Committee report states that the French offer is the only one which does conform to all required tender specifications and while it is more expensive, does compensate with better credit facilities.
The issue of buying new locomotives for Sri Lankan railway arose when Srimani Athulathmudali took over as Transport Minister. Speaking to The Sunday Times, Ms Athulathmudali said one of the first steps she undertook at the Transport Ministry was to speak with the railway engine drivers and engineers seeking their views on what locomotive engine would be best suited for Sri Lankan railway.
Subsequently, Ms. Athulathmudali said a policy decision was taken by the railways, consequent to a seminar held, at which a large number of railway engineers and foremen participated. At this seminar certain specifications were agreed upon as well as a standardization program which was advocated as being a crucial issue by all the experts present at this seminar.
The outcome of the seminar was that the General Motor Engines were best suited for railways. In a letter dated 11th October 1996, Ms. Athulathmudali wrote to Mr. A.D. Leelaratne, Secretary, Sub Advisory Committee, Railways, stating that the outcome of the seminar was that the General Motor Engines were best suited to our railways. The letter said that the Transport Minister had directed the General Manager Railways to look at the possibility of the Technical Evaluation Committee accepting these proposals.
A Technical Evaluation Committee report states that certain policy decisions which were taken at this seminar were later included in the government tender. Sri Lanka Railways then invited offers for either locomotives which develop 1800 BHP at the rail and locomotives which develop 1200 BHP at the rail. However the proposals called for locomotives with a preference of a minimum 1800 horsepower.
In addition other observations were made with regard to this offer. Most of the components manufactured by General Motors have been used in the manufacture of a considerable number of locomotives operating in Sri Lanka Railways at present. Therefore railway technical experts say this will contribute to standardization.
The report states that out of the three technically responsive tenders only one was for the 1200 horsepower category and 2 were for the 1800 horsepower category. General Motors Canada made the lowest offer for 1200 horsepower engines.
The Sunday Times learns that the Technical Evaluation Committee cleared and made recommendations that five locomotives be bought from General Motors, Canada and five from Samsung Korea. The offer submitted by Samsung Corporation Korea was the lowest evaluated offer for the 1800 BHP category.
The Samsung representative said their offer was the most acceptable-Rs. 43 million-lower than the French offer. However it was upto the govt. to decide.The argument by some railway engineers is that a 1200 horsepower engine would pull at minimum speed uphill, while a 1800 horsepower engine would pull at maximum speed. Since the offer submitted by General Motors of Canada Ltd., was the lowest evaluated offer in the 1200 BHP category, with Samsung Korea being the lowest in the 1800 BHP category, the Committee reportedly were of the view it would be best to buy 5 engines from each company, using the 1200 horsepower for low country and 1800 horsepower engines for upcountry.
General Motors, meanwhile guarantees that their 1200 BHP units can do precisely what the 1800 BHP category can do due to advancement in proprietary technology patented only by GM. Hence the offer whilst meeting all performance criteria specified is unquestionably better value for money, they say. The General Motor offer however does cause a deviation in tender specifications which states a preference for 1800 horsepower engines.
Meanwhile an allegation has been made that the GEC/Alsthom offer from France, with the Ruston RK 215 engine has never been used on any railroad and that it is generally used on the marine field.
A spokesman for GEC/Alsthom said, the French engine is supplied for 60% of the world locomotives. It is, he said, the biggest locomotive manufacturer in the world.
The GEC/Alsthom offer while having quoted a much higher price, however offer better credit facilities than the other two responsive tenders. The Technical Evaluation Committee report clearly states this. The French have proposed the use of a type of motor (AC Traction motor) which has never been used in Sri Lanka in any type of locomotive. This implies that there will be training and familiarization cost for Sri Lanka Railway engineers.
All these costs have been included in the overall offer made by GEC/Alsthom, a company spokesman said. He further asserted that General Motor models have changed over the last 40 years and GM spare parts too are now different.
Another allegation made is that there is wide acknowledgment of the fact that the engine offered by the French is outdated and is being phased out even in the country of original manufacture, Britain, and has never been used by any Railway authority in any territory. The French however say the engine comes with very high credentials and is still being manufactured in France. 75% of the product is manufactured in France and 25% in the UK. He asserted that the world's fastest train is manufactured by GEC/Alsthom.
Adding that the Alsthom offer is the only one which has conformed to all specifications required in the tender he said another vital factor to be considered was that their offer provides for a wheel base length that will make the chances of derailment low, if compiled with specifications.
Meanwhile all Overseas Economic Corporation Development (OECD) member countries including France, USA and Korea, are committed to and can offer the same financing rates. The variations in the interest rates as in the case of this tender, cannot be classified as binding as in all financial packages of the technically responsive bidders the interest rate is given as an indicative rate for discussion only. Also the interest rate for different currencies very due to the strength of each currency in the international market and the exchange conversion rate. The financial packages included in the bids are only for discussion purposes. The exact interest rates and other fees have to be set during detailed discussions with the lending institution. Therefore stating that one offer is lower or better than the other offer is misleading and inaccurate.
The government soon after assuming office promised to define tender procedure and put a stop to large scale corruption that prevailed in the awarding of tenders. Minister Mangala Samaraweera said last week that any bidder or tenderer who feels that the tender was not fairly and justly awarded would be permitted to appeal to a special unit that would be set up under the direct supervision of the President.
The local agents are Nimal Cooke of the Maharajah Organisation representing General Motors of USA/Canada, Mr. Boo representing Samsung Korea and Mr. Dulip Thiagarajah representing GEC/Alsthom France.
Credit Proposal submitted by M/s Samsung Corporation, the lowest evaluated tenderer in 1800 BHP Category:
According to the Credit Proposal of M/s Samsung Corporation through KEXIM - Korea, has indicated the following main features.
1. Interest rate - 7.86% 2. Grace period - No 3. Repayment - 20 half yearly instalments. 4. Repayment period - 10 years 5. Down payment - 15% 6. Commitment charge - 0.5% 7. Admn. Fee - US$ 200,000
Credit proposal submitted by M/s GEC Alsthom Transport SA, the second lowest tenderer in the 1800 BHP Category:
According to the credit proposal of M/s. GEC Althom Transport SA, through CAI-France, has indicated the following main features:
1. Interest rate - 6.13% 2. Grace period - No 3. Repayment - 20 half yearly instalments 4. Repayment period - 10 years 5. Down payment - 15% 6. Commitment charge - 0.5% 7. Admn. fee - 0.5%
The Federal Court of Canada has ruled that the Sri Lankan separatist group Liberation Tigers of Tamil Eelam (LTTE) cannot be considered "freedom fighters" in the eyes of Canadians, as supporters of the group have claimed.
Senior Federal Court Judge Max Teitelbaum said last week that the LTTE has committed 'terrorist acts' no matter how one would define 'terrorism', a statement from the Foreign Ministry said.
Justice Teitelbaum said: "The LTTE's assassination of the mayor of Jaffna on July 27, 1975 solely on the basis of his pro-government leaning is to me an act that one may consider 'terrorist' in nature. The execution of a police constable on February 14, 1977 gives rise to a reasonable conclusion that a 'terrorist act' has taken place.
The shooting of a member of Parliament, who later died, is a 'terrorist act'. The blowing up of a civilian aircraft is a 'terrorist act'. Attacks on civilians are, as I have said 'terrorist acts' whether the attack is on a fishing village or on farms. The may 14, 1985 LTTE attack and massacre where 138 to 146 civilians at Anuradhapura in Sri Lanka were killed can be considered a 'terrorist act', the statement said.
Justice Teitelbaum made these remarks on October 14 while delivering detailed reasons for a decision given by the court on August 29 in Ottawa upholding a decision by the Canadian government which declared LTTE activist Suresh Manickwasagam as a person inadmissible into Canada.
Manickawasagam, a key fund-raiser an activist for the LTTE, was detained by police in October 1995 on a Certificate based on a Security Intelligence Report prepared by the Canadian Minister of Citizenship and Immigration. An opportunity for Suresh to be heard was granted and proceedings commenced on March 19, 1996. More than 50 days of hearings took place.
Giving reasons for the earlier decision, Justice Teitelbaum said: "I am satisfied that there were reasonable grounds to believe that Suresh was and is a member as he, from the time of his being very young, partook in LTTE activities such as pasting of posters, collecting food and then becoming part of the LTTE executive and finally, at the request of the LTTE, travelled to various countries, including Canada, to head the World Tamil Movement, which it can reasonably be concluded, is part of the LTTE organization or is, at the very least, an organization that strongly supports the activities of the LTTE.
About the defendant Manickawasagam Justice Teitelbaum had this to say: "After listening to Suresh and after reviewing certain documents put before me, I can only conclude that Suresh lacks total credibility. I believe I need say no more than I am satisfied that Suresh obtained his refugee status in Canada," by wilful misrepresentation of facts" aggravated by the fact that he lied under oath before the Immigration and Refugee Board swearing the information contained in this Personal Information Form was all accurate. In reviewing the written document submitted by Suresh in order to obtain his refugee status, I am convinced that little, if anything, written by Suresh was true", says the statement.
Tens of thousands of families have been rendered homeless in heavy floods and landslides across the country with Haputale and Hambantota being the worst affected, Social Services officials said.
They said each affected family was being given Rs 10,000 as compensation along with essential dry rations while emergency measures were being taken to repair hundreds of houses destroyed in the most devastating flood havoc in recent times.
Women's Affairs Minister Hema Ratnayake who toured the Haputale electorate said massive landslides had affected scores of acres of land.
In Hambantota the town is under water and an emergency canal is being dug to ease the situation.
The adjoining Matara district has also been severely hit. Officials said floods had also been reported from Ratnapura, Puttalam, Kurunegala, Moneragala, Galle, Gampaha and Badulla.
Some top officials of the security forces are playing the dirty game of fattening themselves from the war, an MP has charged.
UNP member Tilak Karunaratne, dropping a bomb shell during the budget debate in Parliament, alleged that one military man was building his third house in Kotte while another was building a 17.5 million rupees mansion in Kandy.
Another had sent his daughter for education to London at a cost of some five million rupees, the MP said, spotlighting instances where some were plundering the wealth of the country while brave young men were dying for it.
City Traffic police will have in place a super plan to ease traffic congestion, a senior police officer said.
Head of the Colombo City Traffic Division, SSP S. K. Shanker told 'The Sunday Times': "Soon we will introduce a third lane for the use of buses. The plan to be implemented with Moratuwa University experts is expected to ease congestion at peak hours, but it may also cause some inconvenience to pedestrians."
They also intend to relocate phone boxes, parking signs and other such items on the main roads to more convenient places.
Police are puzzled over the death of a young nurse of the Lady Ridgeway Hospital who is suspected to have died after an abortion.
Police are still looking for a breakthrough in the case after nurse Nilanthi Thushari Abeywardena's body was left at the Karapitiya hospital OPD on Nov. 7.
A woman and a man who called at the hospital has said she had suffered a heart attack at a wedding house. JMO Prof. Chandrasiri Niriella, who conducted the post-mortem examination said that the 25 year old Nilanthi was six months pregnant. Police said the abortion has been carried out at a place in Baddegama.
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